My friends and i came up with an idea that involves streaming music for free and paid members like spotify. We are aware that we will need to get licensed by record labels. We do not know how to go about it. These are our questions:
For streaming music you generally fall under the "radio broadcaster" set of requirements. This grants you a statutory license to play any music at a fixed royalty rate. All you need to do is track what you play. Royalties can be submitted to SoundExchange. In addition, your music streams must conform to RIAA guidelines. Microsoft has a pretty good writeup here.